Bidding Documents: Purpose and Contents

Bidding Documents

• Bidding documents are issued by the Procuring Entity
• They provide prospective bidders with the necessary information to prepare their bids
• Bidding documents clearly define the objectives, scope, expected outputs, results of the proposed contract, expected duration, obligations, duties and functions of the winning bidder and the minimum eligibility requirements

Purpose of Bidding Documents

• Provide equal information to all bidders
• Instruct bidders on the procedure for bid submission
• Inform bidders of the criteria for evaluation
• Define all conditions of the contract

Contents of Philippine Bidding Documents (PBDs)

• Invitation to Apply for Eligibility and to Bid (IAEB)
• Eligibility Documents
• Eligibility Data Sheet
• Instructions to Bidders (ITB)
• Bid Data Sheet (BDS)
• General Conditions of Contract (GCC)
• Special Conditions of Contract (SCC)
• Specifications
• Drawings
• Bill of Quantities

Invitation to Bid

• Provides information enabling potential bidders to decide whether to participate in the procurement
• Indicates the date of availability of bidding documents from when the it is first advertised/posted until the deadline for submission and receipt of bids
• Indicates where the bidding documents may be purchased or downloaded
• States the deadline for submission and receipt of bids from the last day of posting
• Contains any important bid evaluation criteria

Eligibility Documents

• Provides the information to prospective bidders necessary to prepare their eligibility documents
• Eligibility documents includes criteria such as being a duly licensed Filipino citizen/sole proprietorship or a partnership duly organized under the laws of the Philippines where at least 60% of the interest belongs to Filipino citizens
• Class A Documents like the Mayor's Permrit or Registration Certificate from DTI may be required
• Class B Documents such as a valid joint venture agreement (JVA) or foreign equivalent eligibility documents may be required
• Prospective bidders must prepare the original and copies of the eligibility documents and in the event of discrepancies, the original shall prevail

Eligibility Data Sheet

• Assists the Procuring Entity by providing specific information and requirements relating to clauses in the Eligibility Documents
• Information that specifies and complements provisions of the Eligibility Documents must be incorporated
• Any amendments and/or supplements to provisions of the Eligibility Documents necessitated by the specific procurement circumstances must also be incorporated

Instructions to Bidders

• Provides the information necessary for bidders to prepare responsive bids, in accordance with the requirements of the Procuring Entity
• It also provides information on bid submission, opening, evaluation, and contract award
• This document includes the scope of bid, source of funds, procedure for clarifications, form of bid preparation, language, pricing and currencies, bid evaluation criteria, closing date, bid submission procedure, corrections, and bid validity

Bid Data Sheet

• Assists the Procuring Entity by providing specific information relating to clauses in the ITB included in Section II
• Information that specifies and complements provisions of Section II must be incorporated
• Amendments and/or supplements to provisions of Section II as necessitated by the specific procurement circumstances must also be incorporated

General Conditions of Contract

• Provides a complete document expressing all the rights and obligations of the parties when read in conjunction with the Special Conditions of Contract
• Includes: scope of contract, contractor's obligations, warranty, contractor liability and advance payments

Categories of General Conditions

• General conditions encompass every aspect of the project
• Includes roles and work of all parties
• States detailed description of work to be completed
• States all bonds and the insurance requirements
• Notes all warranties/guarantees
• Notes site conditions
• Includes change orders
• Includes rejection of defective work

Time

• Includes the date of commencement
• Says that contracts provide for a Notice to Proceed to be issued before the contractor can start work
• Defines substantial completion
• States progress milestones

Delays and Extensions

• Delays and extensions should also be touched on in this section
• Determines If the contract allows for extensions and if delays are categorized as "compensable” or “non-compensable"

Price and payments

• Determines the full contract price and how payments are structured
• Includes progress payments or a lump sum of final payments
• Shows how progress payments are scheduled
• Includes the payment application process and if there will be retainage
• Defines substantial completion
• Includes what happens if the owner decides the work is defective or insufficient

Suspensions & Termination

• Outlines the circumstances where the contract might be suspended or terminated
• Includes anything from the owner having funding issues to any delays the project might encounter
• Lists the various ways the contract can be terminated
• Includes termination for frustration, convenience, or other circumstances

Changes

• These provisions typically fall under Change orders, changes in directive or minor changes
• Change Orders are amendments to the contract that are essentially a mini-agreements to adjust the work, price and schedule of the initial contract
• Change Directives authorize the owner to unilaterally make changes to the work, with later agreements for price and scheduling
• Minor Changes are adjustments that don't affect either the price of the time to complete performance and it may be a good idea to set parameters for what's considered a “minor" change

Claims and Disputes

• The construction contract should provide how disagreements should be dealt with:
• What types of notices are required
• Time limits for any claims against the owner
• States if the contractor should suspend work or continue performance in the event of a non-payment issue
• Most contracts provide for disputes to be dealt with by an agreed-upon dispute resolution procedure prior to court
• Dispute resolution procedures can be in-house, mediation, arbitration or full-blown litigation.

Special Conditions of Contract

• Assists the Procuring Entity by providing contract-specific information in relation to corresponding clauses in the General Conditions of Contract
• Information that complements provisions of the GCC must be incorporated
• Amendments and/or supplements to provisions of the GCC as necessitated by the specific purchase, must also be incorporated
• No special condition which defeats or negates the general intent and purpose of the provisions of the GCC should be incorporated herein

Specifications

• A set of precise and clear specifications are a prerequisite for Bidders to competitively respond to the Procuring Entity's requirements
• In international competitive bidding, the specifications must be drafted to permit the widest possible competition
• The specifications must present a clear statement of the required standards of materials, Plant, other supplies, and workmanship

Drawings

• A simplified map showing the location of the Site in relation to the local geography, indicating major roads, posts, airports, and railroads, is helpful
• Construction drawings, even if not fully developed, must show sufficient details to enable bidders to understand the type and complexity of the work involved and the price the Bill of Quantities

Bill of Quantities

• Provides sufficient information on the quantities of Works to be performed to enable Bids to be prepared efficiently and accurately
• Provides a priced Bill of Quantities for use in the periodic valuation of Works executed once a Contract has been entered into
• The Layout and content of BOQ should be as simple and brief as possible